Zelio E-Mobility (544563)

FairStock Score: 54/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Sales growth of 77.10% and profit growth of 67.66% show strong momentum
• ROCE of 51.78% indicates excellent capital efficiency
• Piotroski F-Score of 7/9 suggests decent financial health
• PEG of 0.47 implies growth is not yet fully reflected in the price
• Latest quarter net profit margin of ~9% on ₹133 Cr sales is respectable

Concerns

• P/E of 34.35 is expensive in absolute terms, leaving little margin of safety
• Zero dividend yield forces investors to rely entirely on capital gains
• Missing data on debt/equity, book value, and promoter holding reduces transparency
• Profit growth slightly trails sales growth, hinting at possible margin pressure

AI Analysis

Buffett here. When I look at Zelio E-Mobility, I see a company riding a powerful wave in India's electric 2/3-wheeler story. Sales grew 77.10% and profits 67.66% — that's impressive, but I don't chase growth blindly. ROCE of 51.78% tells me management is deploying capital efficiently, which is a hallmark of a good business. But let's talk price. At ₹337.50, the market cap is ₹714 crore, or 34.35 times trailing earnings. That's not cheap by Graham's standards. The PEG ratio of 0.47 suggests the market isn't fully pricing in the growth, but that assumes the growth continues. The latest quarter shows sales of ₹133 crore and net profit of ₹12 crore — roughly a 9% margin, respectable but not spectacular. The Piotroski F-score of 7/9 hints at solid fundamentals, but I'm troubled by what I don't see. No book value, no debt-to-equity, no promoter holding. I'm flying partially blind. A zero dividend yield means every rupee of return must come from capital appreciation, which adds risk. If Zelio can sustain even 40-50% growth, today's price may look reasonable in a few years. But if growth decelerates to 20%, a 34 P/E will compress painfully. This is a fast grower, not a stalwart I can sleep on. I'd want to see cash conversion, debt levels, and who controls the company before I commit serious capital.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer